C.E. Info System (MAPMYINDIA)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Very low leverage: Debt/Equity of 0.04 and Altman Z-score of 5.48 show a financially sound balance sheet.
• Strong profitability: ROCE of 24.13%, ROE of 16.69%, and latest quarter net margin of roughly 20% are credible.
• Promoter holding of 51.36% aligns owner and minority interests.
• Piotroski F-score of 6/9 indicates generally sound fundamentals.
• Sales growth of 10.79% shows demand is still expanding, even if profit has dipped.

Concerns

• Profit growth is negative at -3.35% despite 10.79% sales growth, suggesting margin pressure.
• Valuation is rich: P/E of 42.88, P/B of 6.56, and Graham Number of ₹282.75 imply a margin of safety of -265.73%.
• Free cash flow of only ₹11 Cr is tiny relative to the ₹5,659 Cr market cap, showing poor earnings conversion.
• The stock has fallen from its 52-week high of ₹1,998 to ₹948, and sentiment may remain weak.

AI Analysis

When I look at C.E. Info System, I see a decent business but a very demanding price. The company has a clean balance sheet—Debt/Equity of just 0.04—and a return on capital of 24.13% and return on equity of 16.69%. Those are respectable numbers. Promoters hold 51.36%, so interests are aligned, and the Altman Z-score of 5.48 suggests no near-term financial distress. I also like that the latest quarter converted ₹94 Cr of sales into ₹19 Cr of net profit, a healthy margin. But a great business is not always a great investment. Sales grew only 10.79%, while profit actually fell 3.35%. The Piotroski score of 6/9 is okay, not spectacular. Free cash flow of ₹11 Cr is far too small relative to a ₹5,659 Cr market cap—at this price, I am paying over 500 times cash flow. The valuation of 42.88 times earnings and 6.56 times book value leaves no margin of safety. Graham’s number is only ₹282.75; even that conservative measure is far below the current price of ₹948.35. The supplied DCF of ₹2.20 is so low that I would either question its assumptions or conclude that the market is pricing in perfection for many years. The stock has fallen from ₹1,998 to ₹948, and with profit declining, there is no bargain here. If the company can re-accelerate profit growth and convert more earnings into cash, it may become interesting at a much lower price. Until then, this is a high-multiple, moderate-growth, profit-negative-trending business. I prefer a margin of safety; this stock does not offer one.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer